You have to love Mr. Market when the trend turns lower. You have to be prepared, the artillery ready and the decisiveness to your actions. I am so lucky that I was ready last week, especially on Monday the 12th, when the market plunged downward and I had been prepared to make a purchase or two. Those two purchases happened to be Target (TGT) and T. Rowe Price (TROW).
Target Corporation (TGT) Stock Purchase
Have to love the #RedCard with Target (TGT)! From my recent September watch list posted last week, it just so happened to chime well right into my stock purchases. There, I talked about the stock price tanking to $69, and, well, I wanted TGT at a 3.50% yield, which calculated out to be $68.57. I had a limit order set and BAM! The limit order triggered and 25 shares was added to my total pile of TGT stock. If you recall, as well, I need 300 shares of TGT to use their dividends to help pay for the food bill, and oddly enough, this gets me closer, haha! All in all, the quick re-cap of TGT at $68.57: Price to Earnings (P/E) was 13.55, payout ratio at 47%, dividend yield 3.50% and they also have repurchased their shares like crazy.
Though this doesn’t fulfill my – extremely large purchase of $3,000 and up, in order for me to reduce trading costs, but this is quite alright. All in all – the 25 shares purchased costs, as you can see above, a total of $1,721.20. The 25 shares added $60 to my forward income or $15 per quarter going forward. I also now own a total of 106+ shares of TGT that produces a total $256 going forward. Very fortunate and excited for the December dividend, that’s for sure. But wait… I didn’t stop there…
T. Rowe Price (TROW) Stock Purchase
Similarly as mentioned in the watch list article, That price point, at the time, was $67.48 and I set a solid flat limit order of $67.00 or slight 0.7% decline. Also – wanted to see if I could have purchased it before their ex-date. Damn I got lucky. Monday morning this one triggered as well and the $67.00 was hit with another 25 shares added to my T. Rowe Price (TROW) share total! Similar to above, a quick re-cap of TROW at $67.00: Price to Earnings (P/E) was 15.88, payout ratio at 51%, dividend yield 3.22% and they also have been buying back shares consistently.
I essentially split a pot of cash into two stocks, two dividend aristocrats I may add, that were trading, coincidentally, at the same price ranges. The 25 shares cost a total of $1,681.95. The 25 shares added $54 to my forward income or $13.50 per quarter. I now own a total of 72+ shares of TROW that produces a total of $157 going forward. Also – the timing of the purchase allows me to collect the dividend on this purchase in September/3rd quarter as well, not just the 4th quarter like TGT, pumped about how lucky I was with the timing of the limit order to trigger the stock purchase!
Stock purchase summary
Overall, I deployed a total capital amount of $3,403.15, purchased 2 sets of 25 shares and have added $114.00 in dividends on an annual basis. This also helps in adding to the fact my dividend stock portfolio has sky-rocketed over the last few months, and it is so weird/fun/humbling to see this occurring! Very lucky to have been able to purchase two massive dividend aristocrats at the right valuations from the screener being used. I will update my dividend portfolio to reflect this purchases at the beginning of October.
I knew that I had some flack that I wouldn’t be able to buy individual stocks if I was placing more towards my tax-advantaged-strategies. Well, hopefully this shows that it is NOT the case, and I’m still buying stock as I see fit. Lucky that I am able to save such a larger dollar amount to make a stock purchase, or in this case, two. This helps me get closer to the $8,000 project dividend goal as well – as of the close of the week/day of September 17th, I am at a projected dividend income of $7,615! Almost there… trying to knock it down.
What does everyone think of the purchases? Like it or hate it? Would have chosen just 1 instead of both? What are you seeing in the market place? I did see quite a bit more purchases occurring in the dividend community this past week, therefore, similar minds were thinking alike. Excited to read the comments below and don’t hesitate to reach out if there are any other questions or comments you may have, if you don’t want to write below. Thanks again everyone, and happy investing!